U.S. Energy Security Strait of Hormuz Threat – All OPEC imports from the Persian Gulf region are shipped via marine tankers through the Strait of Hormuz. Due to Iran’s developing nuclear arms program, the pending threat to Israel, and U.S. sanctions to possibly curtail Iran’s nuclear arms development, Iran has threatened to the shutdown of the Strait of Hormuz in retaliation. If and when Iran carries out their threat to shutdown the Strait of Hormuz the U.S. would immediately lose about 2.2 MBD of crude oil imports or almost 12% of current total petroleum oil supplied (consumed); far greater than the 4% lost during the 1973 Arab OPEC oil embargo.
Strait of Hormuz Shutdown Impacts – The impact of losing all Persian Gulf imports could be substantial. Not only would the U.S. be subjected to a very quick loss of 2.2 MBD of imports, but the impact on world markets could also be devastating (up to 20% of all world market crude oil supplies currently flow through the Strait). World oil prices could directionally double almost overnight, sending world energy markets and economies into chaos. While the U.S. and UN conventional military forces should be able to readily take-on and neutralize Iran’s conventional forces, it’s Iran’s small-independent, unconventional forces that likely pose the greatest and longer term threat to Persian Gulf shipping and regional OPEC oil infrastructures.
What are the Largest Risks to U.S. Energy Security? by John Miller, August 20, 2013. TheEnergyCollective.com